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What Rising Inflation Means for Interest Rates and Markets

Picture of Scott Colbert Scott Colbert : June 2, 2026

Economy Economic Insights
What Rising Inflation Means for Interest Rates and Markets

Recorded June 2, 2026

In the latest Commerce Trust Market Brief video, Scott Colbert, Chief Economist and Director of Fixed Income Management, discusses the markets and key themes influencing investment performance, inflation, interest rates, and economic growth in 2026, including: 

  • Strong stock performance with many stock market benchmarks around the world near record highs, with modest returns in the bond market due to higher interest rates

  • Why AI, semiconductor chip demand and data center investment remain key drivers of stock market performance

  • How elevated energy prices and dropping oil inventories are contributing to higher inflation and slower economic growth expectations

  • Why expectations for Federal Reserve interest rate cuts in 2026 have diminished with rising inflation

  • Why continued job growth in the U.S. remains an important driver for economic resilience


 

Read the transcript

 

 

 

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